 must break $0.80 resistance for a potential rally, as the SEC delays its ETF decision, impacting institutional adoption.){kind=link}
Key Insights:
- Cardano (ADA) struggles at $0.74 resistance as the SEC delays its ETF decision, impacting institutional adoption.
- Analysts predict a bullish breakout if ADA surpasses $0.80, with potential targets at $0.90, $1.00, and beyond.
- Whales accumulate 180M ADA, signaling confidence, while market trends and Bitcoin’s movement shape ADA’s next move.
Cardano (ADA) faces strong resistance at $0.74 as the broader cryptocurrency market reacts to Bitcoin’s decline. The US Securities and Exchange Commission (SEC) has postponed its decision on Grayscale’s ADA exchange-traded fund (ETF) application until May.
This delay has raised concerns about institutional adoption. However, some analysts still expect ADA to recover if it surpasses key resistance levels.
SEC Delays Cardano ETF Decision Until May
The SEC announced on March 11 that it would extend the review period for several cryptocurrency ETFs. That includes Grayscale’s ADA ETF. The regulatory body cited the need for additional time to evaluate the applications.
In addition to ADA, the decision to issue ETFs associated with XRP, Solana, Litecoin, and DOGE has also been delayed.
The SEC stated in official documents that it has decided to take additional time to review the proposed rule changes. These changes would allow for the approval of these ETFs.
According to experts, this might slow the institutions’ adoption of Cardano as uncertainty in regulations persists. However, some market players are still bullish on its long-term prospects for ADA.
Cardano Faces Resistance at $0.74, Needs to Break $0.80
Cardano has been moving in a sideways channel and unable to break the $0.74 resistance level. The price ranged between $0.70 and $0.74 within the last 24 hours and generally increased by 1.7%.
However, due to the bearish market trends, ADA still traded 21.6% down after the week.
Technical analysis indicates that ADA must surpass the $0.80 resistance level to gain momentum. Analysts predict a potential rise toward $0.90 or even higher if it manages to break through.
However, failure to sustain the current price level could lead to a decline toward the next support level of $0.63.
Analysts Predict a Possible 12X Surge for ADA
Despite recent struggles, some analysts believe ADA could see a significant price breakout. A chart analysis suggests that Cardano has formed a “Cup and Handle” pattern.
This often signals a strong, bullish move. If the pattern holds, ADA could experience a 12-fold increase once it surpasses key resistance levels.
One analyst has defined the $3.23 level as a key level for a breakout, either to the downside or upwards. If the token breaks this price, the next level maybe $6.45.
At the same time, an ideal price of around $9.33 might be considered ideal. According to another analyst, Cardano could target $10 long-term based on market trends and institutional adoption.
At the same time, on-chain indicators imply that institutional investors are increasing their ADA holdings.
According to crypto analyst Ali Martinez, whales bought 180 million ADA tokens last week and now possess 6 billion. This accumulation shows traders’ confidence in future price trends.
Cardano Technical Outlook: Will ADA Recover?
Cardano price movement will, therefore, depend on factors such as the movement in Bitcoin price and the general market trends. The ADA chart revealed that the token continues to trade below the resistance level with an RSI reading of 46.30.
This depicted the neutral signal. The Chaikin Money Flow (CMF) continues to be positive, with a value of 0.08.
If Cardano succeeds in moving past the critical $0.80 level, there is a possibility of following through to the $1.00 level. However, a breakdown below the current price level suggested that the $0.70 mark will be tested, and the price will be lower at the $0.63 level.
The future of ADA is still uncertain, but in the long run, many analysts believe it holds tremendous potential.
With the SEC delaying its ETF decision and the market awaiting the FOMC meeting, ADA’s future action will hinge on external factors. These events will play a crucial role in determining ADA’s path forward.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.